A federal deadline is bearing down on one of Minnesota's most unlikely success stories. According to new reporting from MPR News, the upcoming federal hemp-THC ban could tank some of the state's breweries and beverage distributors when it takes effect this November—and yet many of those same businesses are continuing to brew, can, and ship hemp-derived THC drinks right up to the deadline, hoping Congress steps in before it is too late.
If you have followed the rise of low-dose THC seltzers, ciders, and sparkling beverages over the past few years, you already understand why this matters. Minnesota didn't just dabble in hemp-derived THC drinks. It helped build the category. Now the legal foundation underneath it is set to disappear on a single date.
At 23rd State, we make hemp-derived THC beverages here in Minnesota, and we sit on the National Cannabis Industry Association Board of Directors. So we want to be clear-eyed about what is happening, what the law actually says, and—most importantly—what you can do about it. This is not a moment for panic. It is a moment for accurate information and organized action.
What the MPR News reporting reveals
The MPR News story, reported by Nicole Ki, frames the stakes plainly: a federal ban that could wipe out Minnesota's booming low-dose, hemp-THC edible and beverage market is approaching in November, and businesses across the supply chain are bracing for impact.
The reporting puts a human face on a policy fight that can otherwise feel abstract. It opens at Hohenstein's, a beer and THC beverage distributor in Cottage Grove, where order pickers were still pulling and fulfilling customer orders for hemp-THC drinks in early June—a snapshot of an industry that is very much alive today, even as the calendar works against it. That image captures the strange limbo Minnesota operators are living in: the products are legal, the demand is real, the shelves are stocked, and a federal expiration date is ticking in the background.
It is worth reading the full MPR News report for the on-the-ground perspective from the breweries and distributors directly in the crosshairs. Below, we add the policy context that explains exactly how Minnesota got here—and where the fight goes next.
What is Section 781, and why does it threaten hemp-THC drinks?
The threat to Minnesota's market has a name: Section 781.
On November 12, 2025, President Trump signed the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026 (Public Law 119-37) into law. Buried inside that government-funding package—added late in negotiations to help end the longest government shutdown in U.S. history—was Section 781, a provision that fundamentally rewrites the federal definition of hemp. You can read the Congressional Research Service summary of the statutory changes for the official breakdown.
Here is what changed, in plain language:
- A new "total THC" standard. For seven years, the 2018 Farm Bill defined hemp as cannabis containing no more than 0.3% delta-9 THC by dry weight. Section 781 replaces that delta-9-only measurement with a total-THC standard that also counts THCA, the non-intoxicating compound that converts to THC when heated.
- A 0.4 milligram cap per container. Finished consumable hemp products—including the beverages and gummies that have become a mainstream alcohol alternative—are capped at just 0.4 milligrams of total THC per container.
- A one-year transition window. The restrictions do not take effect immediately. They become operative on November 12, 2026, exactly one year after the law was signed.
The practical effect is sweeping. Industry analysts widely cite an estimate from the U.S. Hemp Roundtable that roughly 95% of existing hemp-derived cannabinoid products would become federally unlawful under the new definition. Because the federal Controlled Substances Act defines what counts as a controlled substance by cross-referencing the hemp definition, narrowing that definition automatically pushes a huge swath of products back toward Schedule I—without any new agency rulemaking, comment period, or gradual phase-in beyond the window Congress already set.
In other words, this is not a proposal. It is law. The only open questions are whether Congress amends it before November 12, 2026, and how much of the industry survives the answer.
Why Minnesota is uniquely exposed
Every state will feel Section 781, but Minnesota is exposed in a way few others are—because Minnesota built its market differently, and built it early.
Minnesota legalized hemp-derived THC edibles and beverages in 2022, and the program is widely regarded as one of the most successful and best-regulated in the country. The state's Office of Cannabis Management established a real regulatory framework around these products: licensing, testing, labeling, packaging, and age-gating to keep products out of the hands of anyone under 21. This is exactly the kind of "states already doing it responsibly" model that makes a one-size-fits-all federal ban so frustrating to Minnesota policymakers and operators alike.
Crucially, Minnesota's breweries became the backbone of the hemp-THC beverage market. The Minnesota Craft Brewers Guild, which represents roughly 160 breweries and brewpubs across the state, has noted that breweries are the primary manufacturers of hemp-derived THC beverages in Minnesota. That intertwining of beer and THC beverages is precisely what makes the ban so dangerous locally—and why a "just switch to cannabis-derived THC" solution is not realistic for most of these businesses.
Transitioning from hemp-derived THC to state-regulated cannabis-derived THC would require an entirely different licensing, manufacturing, and distribution framework. And here is the catch that often gets lost in national coverage: under current rules, a brewery that wanted to produce cannabis-derived THC beverages would generally have to stop producing alcohol altogether. For a brewery whose core business is beer, that is not a pivot. It is a demolition.
This is the squeeze the MPR News reporting captures so well. The businesses in the story are not fringe operators. They are established Minnesota breweries and distributors who followed the rules their state set, built real jobs and real products, and now face a federal deadline that the state framework cannot fully shield them from.
The economic and human stakes
It is easy to talk about milligram thresholds and statutory definitions and forget that these numbers attach to livelihoods.
The hemp-derived cannabinoid industry has grown into a market that industry groups estimate in the tens of billions of dollars nationally, supporting hundreds of thousands of jobs across cultivation, manufacturing, distribution, retail, hospitality, and logistics. In Minnesota specifically, that ecosystem includes the brewery taprooms pouring THC seltzers, the distributors like Hohenstein's moving cases across the state, the liquor stores and restaurants that built THC-beverage menus, and the small brands—ours included—that put Minnesota on the map for evidence-forward, adult-use beverages.
A ban that erases the legal status of these products overnight does not just remove items from a shelf. It strands inventory, voids supplier contracts, spooks banking and payment partners, and forces layoffs at companies that did nothing wrong except build within the law their state wrote. The MPR News story's central tension—businesses continuing to operate while a deadline looms—is the rational, if uneasy, response of an industry that refuses to give up on a fix.
Where the fight stands right now
Here is the good news, and the reason the breweries in the MPR News report are still hopeful: the deadline is not the same thing as the final word. Because Section 781 passed through an appropriations bill rather than standalone legislation, Congress can modify, delay, or repeal it through several pathways before November 2026.
Multiple efforts are already in motion:
- Repeal. The American Hemp Protection Act (H.R. 6209), introduced by Rep. Nancy Mace, would strike Section 781 entirely and restore the 2018 Farm Bill definition of hemp.
- Delay. The Hemp Planting Predictability Act (H.R. 7024) would push back the implementation timeline, extending the transition window well beyond the current deadline.
- Senate action. A bipartisan group of senators—including Minnesota's own Amy Klobuchar—has introduced legislation to delay the prohibition by two years, buying time for a regulated framework rather than an outright ban.
Senator Klobuchar has been pointed about why the federal approach misses the mark for states like ours. She has argued that a "one-size-fits-all approach to hemp regulation doesn't work" for states like Minnesota that already maintain strong safety standards, framing the issue as protecting kids and small businesses at the same time—exactly what Minnesota's regulated model was designed to do.
There is also reason for sober realism. In early June 2026, the House Rules Committee declined to advance several hemp-relief amendments for floor consideration, which means the most promising vehicle for relief has shifted toward the Senate and the next appropriations process. That makes the coming months—and constituent pressure on senators—more important, not less.
Advocacy note for the 23rd State team: Our active Section 781 campaign is organized around urging the Senate to attach a delay to the next appropriations package and asking Minnesotans to contact Senators Klobuchar and Smith. Insert the specific amendment number, sponsor language, and our supporter-action link in the call-to-action section below before publishing, and confirm the current legislative status as of the publish date, since this is moving quickly.
Why this matters to 23rd State—and to the category
We are not neutral observers here, and we won't pretend to be. 23rd State is a Minnesota hemp-derived THC beverage brand. A federal ban that erases low-dose hemp-THC drinks affects our team, our partners, and the customers who have made beverages part of a more intentional relationship with how they unwind.
But our argument has never rested on our own interest. It rests on evidence. The category we are part of represents a genuine shift in how adults approach social drinking—what many now call the sober-curious, Cali sober, or "damp" lifestyle—and the research is beginning to catch up to the cultural moment. The MoreBetter Real-World Infused Beverage Study, an observational study of more than 5,000 participants across roughly 20 brands and two cohorts led by Dr. Miyabe Shields and Dr. Riley Kirk, is helping document how real people actually use low-dose THC beverages in everyday life. As an observational study, it reflects self-reported, real-world use rather than clinical outcomes, and individual results vary—but it represents exactly the kind of rigor this category should be held to.
That is the irony at the center of Section 781. Minnesota didn't create a Wild West. It created a model: licensed manufacturers, lab-tested products, clear labeling, 21+ access, and a growing evidence base. A blanket federal ban doesn't reward that responsibility. It punishes it. The better path—the one Minnesota's senators and the state's regulators have been pointing toward—is a sensible federal framework that preserves access for adults while keeping the guardrails Minnesota already built.
What you can do before November 12, 2026
The deadline is real, but so is your ability to influence the outcome. Here is how to help, whether you are a longtime customer, a fellow operator, or simply someone who believes adults should be able to choose a low-dose alternative to alcohol.
- Contact your U.S. senators. Minnesotans can reach Senators Amy Klobuchar and Tina Smith and ask them to support delaying Section 781 and to back a regulated federal framework rather than a ban. A short, personal message about why these products matter to you carries real weight. (23rd State team: link our supporter-action tool and pre-filled message here.)
- Tell your representative the local story. Section 781 passed with almost no debate. Reminding members of Congress that real Minnesota breweries, distributors, and jobs are on the line is exactly the kind of district-level pressure that moves appropriations decisions.
- Keep supporting Minnesota businesses. As the MPR News reporting makes clear, these products are still legal today. Continuing to buy from the breweries, taprooms, and brands you love is one of the most direct ways to keep the industry afloat while the policy fight plays out.
- Stay informed and share accurate information. Follow trusted sources, share reporting like the MPR News story, and help correct the misconception that the products are already gone. They are not—yet.
Read more about our position and how to get involved on our Section 781 advocacy hub.
Frequently asked questions
What is Section 781? Section 781 is a provision in the federal appropriations law (Public Law 119-37) signed in November 2025. It rewrites the federal definition of hemp, replacing the 2018 Farm Bill's 0.3% delta-9 THC standard with a stricter total-THC standard and capping finished hemp products at 0.4 milligrams of total THC per container. Industry analysts estimate it would render roughly 95% of current hemp-derived products federally unlawful.
When does the hemp-THC ban take effect? The new restrictions become operative on November 12, 2026—one year after the law was signed. Until that date, hemp-derived THC products that comply with current state law remain legal to sell in Minnesota.
Are THC drinks still legal in Minnesota right now? Yes. As of today, hemp-derived THC beverages that meet Minnesota's regulatory standards are legal to manufacture and sell. The MPR News reporting confirms that breweries and distributors are continuing to produce and ship these products up to the deadline.
Will Section 781 affect 23rd State products? Like every hemp-derived THC beverage maker in the country, 23rd State would be directly affected if Section 781 takes effect as written. That is why we are actively supporting efforts to delay the ban and to establish a sensible, regulated federal framework instead.
Can the ban still be stopped or delayed? Possibly. Because the ban was enacted through appropriations rather than standalone legislation, Congress can amend, delay, or repeal it through future spending bills or stand-alone measures. Several repeal and delay bills have been introduced, and the focus has increasingly shifted to the Senate. Constituent pressure between now and November 2026 will play a meaningful role.
Why is Minnesota hit harder than other states? Minnesota's breweries are the primary manufacturers of hemp-derived THC beverages in the state, and switching to cannabis-derived THC would generally require them to stop producing alcohol entirely. Combined with one of the country's earliest and most established hemp-THC markets, that makes Minnesota especially exposed.
23rd State products are intended for adults 21 and older. Statements about the MoreBetter Real-World Infused Beverage Study reflect an observational, self-reported study; individual results vary, and nothing here is intended as medical or health advice. This article is for informational and advocacy purposes and does not constitute legal advice.
